In the statement of cash flows, inflows and outflows of cash from buying and selling available for sale securities are considered:
A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Noncash financing activities.

Question

Quizplus · Accepted Answer

Inflows and outflows of cash from buying and selling available for sale securities are considered investing activities. Operating activities involve the primary business activities of a company such as sales and expenses, financing activities involve obtaining or repaying funds, and noncash financing activities are transactions that do not involve cash, such as issuing common stock in exchange for property.

In the Statement of Cash Flows, Inflows and Outflows of Cash